Portugal is a hot destination for international property buyers, who have settled there or are buying in a holiday home. If you're planning to buy a property in Portugal, it is essential to explore your mortgage options. Read on to discover the best Portuguese mortgages for non-residents and learn how to compare them quickly and without unnecessary cost.
If you're considering buying a property in Portugal as a non-resident, you may be wondering about your mortgage options. Luckily, numerous Portuguese banks offer mortgages to foreigners and Portuguese expats.
Read on to learn more about the best Portuguese mortgages for non-residents and how to compare offers quickly and without fees. Homevest, for instance, provides a fee-free mortgage comparison service in Portugal.
Millennium BCP is a popular choice for non-residents seeking a mortgage in Portugal. They offer various mortgage options with competitive rates and favorable terms. Non-residents seeking a mortgage through Millennium BCP must purchase a property worth a minimum of 100,000 euros.
The variable rate is 1.5% + Euribor 12m, and the term range varies between 5 and 30 years.
Pros
Cons
Banco Santander Totta offers mortgage services for non-residents wishing to purchase property in Portugal. They provide a range of mortgage options with up to 80% financing available.
With Banco Santander Totta, you can borrow between 75,000 and 1,000,000 EUR at an initial rate of 2.5%, which is competitive in the Portuguese market. However, depending on the customer profile, there may be a 0-1.5% opening fee.
Pros
Cons
UCI offers a fixed-rate option for the first five years of the mortgage loan at 4.65%. After the first 5 years, it's 1.64% + Euribor 6m.
However, the interest rates quoted do not include any potential bonus schemes or discounts that may be available through purchasing additional products with the bank.
Pros
Cons
Novo Banco has various solutions for non-resident foreigners who need banking services in Portugal. If you are interested in purchasing a property, Novo Banco provides fixed-rate and variable-rate mortgages tailored to your specific situation, whether you are a resident or not.
The bank also offers insurance and investment funds for non-resident foreigners.
Pros
Cons
BPI offers a variety of mortgage options for non-residents looking to buy a second home in Portugal. Their mortgage for non-residents provides flexibility with fixed and variable rate options, with terms of up to 30 years.
The variable rate is 2.2% + Euribor 12m, and the term range varies between 1 and 30 years.
Pros
Cons
Crédito Agrícola offers both fixed and variable-rate mortgages extending to 40 years. This long repayment term facilitates manageable installments, easing the financial pressure on borrowers.
The variable-rate mortgage is 1.8% + Euribor 12m. This option is subject to market fluctuations and individual borrower circumstances.
Pros
Cons
Bank | Interest rate |
---|---|
Millennium BCP | 4.65% first five years. 1.75% + Euribor 6m after that |
Banco Santander Totta | 2.5% + Euribor 12m |
UCI | 4.65% first 5 years. 1.64% + Euribor 6m after that |
Novo Banco | 2.5% + Euribor 12m |
BPI | 1.80% + Euribor 6m |
Crédito Agrícola | 1.8% + Euribor 12m |
The cost comparison was made on June 1, 2023
This comparison includes the mortgage interest rate, but there are also other costs that you should consider when analyzing the bank fees.
When considering mortgage options for buying a property in Portugal as a foreigner, it is essential to consider the interest rates and the additional costs and fees associated with each loan. While some lenders may offer lower interest rates, they may also have higher fees that could make the overall cost of the mortgage higher.
To ensure that you are getting the best deal possible, compare multiple lenders and their offers before making a decision. It can be time-consuming, but fortunately, platforms like Homevest can help simplify it for you. With Homevest, you can easily calculate your budget and compare mortgages from multiple lenders all in one place.
By comparing mortgage options and utilizing tools like Homevest, you can feel confident that you are making an informed decision and getting the best possible deal for your new property.
The qualifications for a mortgage loan in Portugal can vary depending on the lender. However, in general, some of the requirements for obtaining a mortgage loan in Portugal may include:
A fixed-rate mortgage means that the interest rate is locked in for the life of the loan and will not change, regardless of any changes in the market. This means that your monthly payment will remain the same throughout the loan term, providing a predictable and stable payment schedule.
On the other hand, a variable-rate mortgage means that the interest rate can change over time based on the current market conditions.
Portugal has long been a popular destination for foreigners, who have either settled there or invested in a holiday home. If you're considering doing the same, it's important to understand the process involved. Keep reading a guide that covers everything you need to know when buying a property in Portugal as a foreigner.
Sources used and checked on June 2023:
We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.
Finding the perfect property can be challenging, but fortunately, foreigners can get a mortgage in Portugal to maximize their property budget. Continue reading to learn all you need to know if you're considering relocating to Portugal or buying a holiday home.
Having decided that you want to buy a house or apartment in Portugal, you might find yourself wondering what the best way to proceed with finding and applying for a suitable mortgage might be. Rest assured, you have arrived at the right place - Homevest is here to explain your options and help you find a mortgage based on your individual situation.
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